Help understanding state pension forecast

tmppension

I've checked my state pension forecast and I'm struggling to fully understand the COPE amount and what impact future NI contributions will make.

I have 26 full years and it says I'll get £130 per week based on my NI contributions so far and £165 if I contribute a further 8 years. Within these amounts is £30 COPE.

What I am trying to understand is, can I increase the state pension by continuing to contribute. Does it mean that if I put another 8 years NI in I'll hit £135 and they still expect £30 to be provided from when I was contracted out. If I then continue to make contributions will the £135 start to go up?

Dazed_and_confused

What I am trying to understand is, can I increase the state pension by continuing to contribute.

Given the previous paragraph you posted I'm struggling to understand why you have asked this question.

You clearly can increase your State Pension by continuing to contribute. Contribute another 8 years (one of which may be over in a month) and you will be entitled to £164.35.

I don't think there is anyway you can get £165 but maybe you have rounded £164.35 upto £165?

Where are you getting £135 from?

And just ignore COPE, it is irrelevant. You are almost certainly going to get a pension from a current or former employer that is worth £30 or more per week but that has no impact on your State Pension.

tmppension

I understand I increase my state pension by contributing a further 8 years.

Yes I've used round numbers to make things easy so, using my rounding £165 is full state pension!
My understanding is COPE is what the state think I should get from another provider having contributed to a pension instead of paying NI. The COPE as per my post is £30 therefore based on my understanding the state will pay £135 if I contribute another 8 years of NI.

My question is therefore, can I increase that £135 by contributing further and if so by how much?
Thanks

Dazed_and_confused

There is no £135 that you can increase.

Contribute 8 years and you will get £164.35.

tmppension

I was contracted out for 10 of the 26 contribution years on my record. The forecast states that it includes £30 COPE amount.

Are you saying that the state will pay me £164.35 if I contribute another 8 years even though I was contracted out for 10? What I have read suggests otherwise and I am seeking clarity,

Dazed_and_confused

Where have you read something else? Can you post a link?

You are generally considered a winner under the new system. Paid lower NI for 10 years but young enough to make your State Pension up to the standard new State Pension amount.

tmppension

I can't post a link but on the government website there is a state pension factsheet that tells me that COPE is the amount the government does not pay me but believes I should have from other pension arrangements by contracting out. That plus my forecast tells me the government will pay me a reduced state pension - £135 per week after a further 8 years NI contributions.

I have no interest in whether I am a winner or loser under this system. I am looking at this from a planning perspective, what will the government pay be and can I increase that amount further?

p00hsticks

tmppension wrote: »

That plus my forecast tells me the government will pay me a reduced state pension - £135 per week after a further 8 years NI contributions.

You're contradicting yourself now - in your initial post you said;

tmppension wrote: »

it says I'll get £130 per week based on my NI contributions so far and £165 if I contribute a further 8 years. Within these amounts is £30 COPE.

Forget about the COPE - it was used when working out your starting amount when the new state pension was introduced in 2016 and has no further significance.



You're currently entitled to £130, pay another 8 years and you'll get the maximum £165.

Presumably you also have some private/company pension from when you were contracted out too.

Dazed_and_confused

That plus my forecast tells me the government will pay me a reduced state pension - £135 per week after a further 8 years NI contributions.

In your original post you said your forecast (with 8 years additional contributions) was £164.35.

What has changed since your original post?

You do realise COPE is pretty mucn an utterly irrelevant amount now your starting position has been established.

You are adding £4.70/week to your current entitlement with each additional qualifying year you add. Although the 8th year cannot take it over £164.35.

So £130 will become £164.35 in 8 years

tmppension

You do realise COPE is pretty mucn an utterly irrelevant amount now your starting position has been established.

No, I found the information on the government website confusing, hence asking here. I believed the government were reducing my state pension by the COPE amount because they believed I should have generated this amount by investing the NI I didn't have to pay by contracting out.

I find it difficult to understand that I will get £164.35 by contributing 35 years of NI contributions when 10 of those were contracted out - hence my confusion!

Dazed_and_confused

35 years is irrelevant as well for you.

That only applies to people entirely under the new system.

You are in a transitional period so you have the ability to get to £164.35 with additional qualifying years. You might get there with 30 years or 45. Or any other number. The 35 quoted under the new rules doesn't come into it.